Presentation to OMB September 17, 20132 Advanced Industrial Biotechnology Company Commercializing Direct To Ethanol ® Technology Fort Myers, FL C ommercial D evelopment C ampus

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### Headquartered in Florida

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### European operations based in Switzerland

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### Research labs in Fort Myers, Florida and Berlin, Germany

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### 160 employees including 66 with advanced degrees

Process Development Unit Fort Myers Research Labs 

# Algenol Corporate Overview

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### $160M equity capital

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### $25M Department of Energy Integrated Biorefinery grant

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### $10M economic development grant from Lee County, FL  

### 60,000 ft 2 

### of Research and Development lab space

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### 4 acre Process Development Unit (PDU)

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### 36 acre demonstration IBR

Integrated Biorefinery

2VW @ Cyano Biofuels, May 02, 2012, Berlin

– Algenol, Dirk Radzinski Sustainable Process Comparison to
other Biofuels 

# Technology Overview: Key Benefit Details

Direct to Ethanol ® does not Require:

 Daily harvesting algae to produce ethanol

 Farm land or food crops

 Fresh water
Added Benefit:

• Waste algae becomes diesel, gasoline and jet fuel Necessary Inputs Are Abundant:

 Sunshine

 CO 2 from industrial sources

- 1 tonne of CO 2 becomes 144 gallons of ethanol, diesel gasoline and jet fuel (125, 7, 6, 6)

 Saltwater is a feedstock, not freshwater

 For each gallon of ethanol produced

- 3 gallons of fresh water can be provided 

## Productivity
>9,000 ethanol gallons per acre

- year 

## Cost Opex target ≈

$ 1.00 /gallon

3VW @ Cyano Biofuels, May 02, 2012, Berlin

– Algenol, Dirk Radzinski • 125 gallons of ethanol

• (and ethanol can 

# Carbon Capture and Climate Change

• 125 gallons of ethanol

• (and ethanol can be converted into polyethylene)

• 7 gallons of diesel (ultra low sulfur diesel)

• 6 gallons of jet fuel

• 6 gallons of gasoline

• 1 tonne of CO 2 becomes 144 gallons of 4 fuels

• 200 million tonnes of CO 2 – equivalent to 67 coal fired power plants

- recycle into 29B gallons of ethanol, diesel and jet fuels, and gasoline • Old arguments against CO 2 capture and climate change are now obsolete.

• It can cost $30

- $50 / tonne to capture CO 2 , and we will buy it for that much

... CO 2 can be captured economically, because we will buy it

1 tonne of CO 2 becomes 144 gallons of 4 fuels

45  

### Commercial strain of algae has been selected

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### Vastly better at making biofuels

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### Yields 25 times higher, therefore much lower cost and much less land

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### On desert or marginal land

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### Can let farmers use farmland to make food

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### Will lower food costs

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### We make 3 gallons of fresh water for every gallon of ethanol 

# Technology Overview: Enhanced Algae

Algenol ’ s Direct to Ethanol ® 

### process uses enhanced algae to produce ethanol

5VW @ Cyano Biofuels, May 02, 2012, Berlin

– Algenol, Dirk Radzinski 

# Technology Overview: Photobioreactors

Low

- cost mini

- greenhouses are key to Direct to Ethanol ® technology ’ s success

 Plastic mini

- greenhouses are modular and deployable at large scale

PBRs are producing ethanol today

6VW @ Cyano Biofuels, May 02, 2012, Berlin

– Algenol, Dirk Radzinski 

# Integrated Bio

- Refinery

Fort Myers, Florida

7VW @ Cyano Biofuels, May 02, 2012, Berlin

– Algenol, Dirk Radzinski 

# Integrated Bio

- Refinery

Fort Myers, Florida 

# We are building as fast as we can

8VW @ Cyano Biofuels, May 02, 2012, Berlin

– Algenol, Dirk Radzinski 

# ALGENOL CO 2 

# Requirements

9 CO 2 Requirements : First Plant: 120,000 t/yr

. Standard Plant: 300,000 t/yr. Ethanol First Plant: 15 MGPY Standard Plant: 37 MGPY

Distillate Fuels First Plant: 2 MGPY Standard Plant: 6 MGPY ok 

## Power Plant Fuels Production Algae

- to

- Fuels Commercial plants10 

# Life Cycle Analysis (LCA)

Life Cycle Analysis Appears in: D. Luo , Z. Hu, D. Choi, V. Thomas, M. Realff , and R. Chance, Env . Sci. & Tech., 2010, 44 pp 8670

– 8677. 

### • Continuously updated as part of our DOE project.



### • Renewable Fuel Standard requirements for greenhouse gas reduction are met in all scenarios studied.



### • LCA is important part of the evaluation of new technology options.



### • Example: Polymer membrane technology (MTR), in combination with Algenol ’ s process simulations and integration concepts, yields lower carbon footprint, as well as lower CAPEX and OPEX.



### • Carbon Capture and Reuse (CCR) scenarios can be evaluated for impact on carbon footprint LCA study is designed to be evergreen

1011 

# Capture vs. Reuse

• Carbon Footprint: Direct To Ethanol ® advantaged vs. CCS and greatly advantaged vs. Status Quo Coal Power Plant CO2 Capture (1 atm ) Algenol Ethanol Production Ethanol Combustion

4.6 MW

- eq. Fuel Energy 1 MWh Electricity 3,400 lbs CO 2 emissions for Algenol Case (which will avoid 3,000 lbs CO2 on fuel lifecycle)

Coal Coal (supply chain) Luo et al (LCA, 1% condensate, VCD case) 2,620 lbs CO 2 570 lbs CO 2 2,620 lbs CO 2 210 lbs CO 2 non - combustion Algenol Plus Coal Power Plant

1 MWh Electricity CO2 Sequestration Gasoline Combustion

Compression Parasitic Load

– 10% 3,580 lbs CO 2 For Sequestration Case 4.6 MW

- eq. Fuel Energy 5,610 lbs CO 2 For No CO 2 Capture Case 1 MWh Electricity Gasoline Combustion

4.6 MW

- eq. Fuel Energy Comparison to Sequestration (CCS) Comparison to Status Quo (No Capture)

1112 

# Algenol view on Carbon

12 

## • The US government can/should play a role in maximizing industry incentives to capture carbon dioxide.

• W e specifically request that EPA be explicit that new coal fired power plants be allowed to use CCR (reuse) in a par with CCS (sequestration) if the carbon emissions are within the target limits.

• We would also “ask” that:  CCR be considered in the upcoming EPA rules governing existing power plants.  CCR beyond Enhanced Oil Recovery (EOR) be fully concerned as an Administration priority in funding DOE & NETL.  The Administration should take a leadership in ensuring that IRS use a broad and flexible interpretation of their rules in assessing REIT status to renewable projects using CCR technologies.